{"operation":"document","citation":"CPF 520100007","title":"HAWAII GAS — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2010-02-19","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.459.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520100007.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520100007.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520100007","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520100007","body":"Notice of Probable Violation involving HAWAII GAS. PHMSA's enforcement data identifies the cited regulation as 192.459. The case was opened on 2010-02-19 and is reported as closed as of 2012-11-02. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520100007_Closure Letter_11022012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520100007/520100007_Closure%20Letter_11022012.pdf\n\n520100007_Closure Letter_11022012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520100007/520100007_Closure%20Letter_11022012_text.pdf\n\n520100007_FinalOrder_11022010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520100007/520100007_FinalOrder_11022010.pdf\n\n520100007_FinalOrder_11022010_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520100007/520100007_FinalOrder_11022010_text.pdf\n\n520100007_NOPV PCO_02192010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520100007/520100007_NOPV%20PCO_02192010.pdf\n\n520100007_NOPV PCO_02192010_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520100007/520100007_NOPV%20PCO_02192010_text.pdf\n\n520100007_Closure Letter_11022012_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nNovember 2, 2012\nMr. Thomas K.L.M. Young\nSenior Vice President and Chief Operating Officer\nThe Gas Company, LLC\nP.O. Box 3000\nHonolulu, HI 96802-3000\nClosure of Final Order\nRe: CPF No. 5-2010-0007\nDear Mr. Young:\nOn November 2, 2010, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to The Gas Company, LLC, a Final Order in the above-referenced case. This Order\nincluded a Compliance Order. Based on our review of the documentation you provided and\nconfirmation of completion by on-site verification, it has been determined that you have\ncomplied with the terms of this Order.\nAccordingly, this case is now closed and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nChris Hoidal\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 P. Katchmar (#127077)\n\n520100007_FinalOrder_11022010_text.pdf\n\nNOV 2 2010\nMr. Thomas K.L.M. Young\nSenior Vice President and Chief Operating Officer\nThe Gas Company, LLC\nP.O. Box 3000\nHonolulu, HI 96802-3000\nRe: CPF No. 5-2010-0007\nDear Mr. Young:\nEnclosed please find the Final Order issued in the above-referenced case. It makes one finding\nof violation and specifies actions that need to be taken by The Gas Company, LLC, to comply\nwith the pipeline safety regulations. When the terms of the compliance order have been\ncompleted, as determined by the Director, Western Region, this enforcement action will be\nclosed. Service of the Final Order by certified mail is deemed effective upon the date of mailing,\nor as otherwise provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nJeffrey D. Wiese\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Chris Hoidal, Director, Western Region, PHMSA\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED [7005 1160 0001 0041 0312]\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\n)\nIn the Matter of )\n)\nThe Gas Company, LLC, ) CPF No. 5-2010-0007\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nPursuant to 49 U.S.C. § 60117, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), Office of Pipeline Safety (OPS), conducted an investigation of an\naccident involving the pipeline system operated by The Gas Company, LLC (The Gas Company\nor Respondent), in Honolulu, Hawaii. The Gas Company, a wholly-owned subsidiary of\nMacquarie Infrastructure Company, operates over 600 miles of gas distribution and transmission\npipelines in Hawaii.1 The investigation arose out of a release of gas and subsequent explosion in\nHonolulu on August 13, 2009.\nAs a result of the investigation, the Director, Western Region, OPS (Director), issued to\nRespondent, by letter dated February 19, 2010, a Notice of Probable Violation and Proposed\nCompliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed\nfinding that The Gas Company had violated 49 C.F.R. § 192.459 and proposed ordering\nRespondent to take certain measures to correct the alleged violation.\nThe Gas Company responded to the Notice by letter dated March 15, 2010 (Response). The\ncompany did not contest the allegation of violation, provided information concerning the\ncorrective actions it planned to take, and requested an extension of the deadline for the\ncompletion of the proposed compliance order. Respondent did not request a hearing and\ntherefore has waived its right to one.\nFINDING OF VIOLATION\nIn its Response, The Gas Company did not contest the allegation in the Notice that it violated 49\nC.F.R. Part 192, as follows:\n1 The Gas Company’s website, http://www.hawaiigas.com/about/index.html, accessed October 12, 2010.\n\n\n\n2\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.459, which states:\n§ 192.459 -- External corrosion control: Examination of buried\npipeline when exposed.\nWhenever an operator has knowledge that any portion of a buried\npipeline is exposed, the exposed portion must be examined for evidence of\nexternal corrosion if the pipe is bare, or if the coating is deteriorated. If\nexternal corrosion requiring remedial action under §§ 192.483 through\n192.489 is found, the operator shall investigate circumferentially and\nlongitudinally beyond the exposed portion (by visual examination, indirect\nmethod, or both) to determine whether additional corrosion requiring\nremedial action exists in the vicinity of the exposed portion.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.459 by failing to examine portions\nof a buried pipeline known to be exposed to the atmosphere. Specifically, the Notice alleged that\na portion of a buried 4-inch main was located inside an underground vault, and was thus exposed\nto the atmosphere. The Notice alleged that The Gas Company first learned that this segment was\nexposed to the atmosphere inside the vault on October 2, 2006, and that the company tried\nunsuccessfully to reroute the pipeline segment around the vault on October 26, 2006. The Notice\nalleged further that the company took no steps to assess the condition of the pipeline at that time,\nand that there are no records to show that the company conducted any follow-up evaluation or\nremediation activity at the site. On August 13, 2009, the segment at issue, which was heavily\ncorroded, leaked and caused an explosion in a nearby building. Respondent did not contest this\nallegation of violation. Accordingly, based upon a review of all of the evidence, I find that\nRespondent violated 49 C.F.R. § 192.459 by failing to examine portions of a buried pipeline\nknown to be exposed to the atmosphere.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 1 in the Notice for violation of 49\nC.F.R. § 192.459. Under 49 U.S.C. § 60118(a), each person who engages in the transportation\nof gas or who owns or operates a pipeline facility is required to comply with the applicable\nsafety standards established under chapter 601. Pursuant to the authority of 49 U.S.C.\n§ 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the following actions to\nensure compliance with the pipeline safety regulations applicable to its operations:\n1. Respondent must investigate the remainder of its gas distribution system on Oahu\nfor evidence of other areas where below-grade pipelines may be exposed to the\natmosphere. If any other below-grade steel pipelines are discovered to be\nexposed to the atmosphere, Respondent must examine them for evidence of\nexternal corrosion, and either repair them or replace them per appropriate code\nrequirements.\n2. Respondent must combine the results of the system-wide survey described above\ninto a summary report and submit the report to Chris Hoidal, Director, Western\nRegion, PHMSA. The report must include the location, type of pipe identified,\nand remediation activities carried out for each incident discovered.\n\n\n\n3\n3. Respondent must train all operations and maintenance personnel who, in the\nexecution of their normal duties could identify any pipe exposed to the\natmosphere that would require follow-up per § 192.459.\n4. Respondent must complete the steps described above by April 30, 2011.\n5. Respondent must maintain documentation of the safety improvement costs\nassociated with fulfilling this Compliance Order and submit that total to the\nDirector, Western Region, PHMSA. Costs shall be reported in two categories: (1)\ntotal cost associated with preparation and revision of plans, procedures, studies,\nand analyses, and (2) total cost associated with replacements, additions, and other\nchanges to pipeline infrastructure.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\nFailure to comply with this Order may result in the administrative assessment of civil penalties\nnot to exceed $100,000 for each violation for each day the violation continues or in referral to the\nAttorney General for appropriate relief in a district court of the United States.\nUnder 49 C.F.R. § 190.215, Respondent has a right to submit a Petition for Reconsideration of\nthis Final Order. The petition must be sent to: Associate Administrator, Office of Pipeline\nSafety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC\n20590, with a copy sent to the Office of Chief Counsel, PHMSA, at the same address. PHMSA\nwill accept petitions received no later than 20 days after receipt of service of this Final Order by\nthe Respondent, provided they contain a brief statement of the issue(s) and meet all other\nrequirements of 49 C.F.R. § 190.215. Unless the Associate Administrator, upon request, grants a\nstay, the terms and conditions of this Final Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":10386}